The dungeons and finding the quest items within them is DF's real challenge imo.
strong enemies are annoying.. but I find it pretty much impossible to find some quest items without the [ ] cheat.
For the record I dont use any magic unless its a magic item I happen to find. my only spell I cant even cast. Try giving yourself some disadvatages when you create your character.
Alright, because going off Arena, the monsters seem a bit too easy, but I guess that's not the actual challenge (Of course, some monster are still hard). I will create a character again, but a Battlemage this time. Thanks!
From my understanding, the Daggerfall main quest is VERY difficult without the use of magic, so I think that making a pure combat character who excels in that field may actually be a very good idea, as it might help offset the lack of any real magic ability. Also, remember, a low Willpower will make rolling a successful save vs. magic very difficult, which may be another balancing factor (if you have an Immunity to Magic, of course, then this is a moot point).
Overall, I think you should be fine.
Well, I'm gonna make a Battlemage anyway, but he'll mainly be concentrated around combat.